EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted. Green numbers along left margin indicate location on the printed bill (e.g., 5-15 indicates page 5, line 15).

1-1 Section 1. Chapter 624 of NRS is hereby amended by adding thereto

1-2 the provisions set forth as sections 2 to 17, inclusive, of this act.

1-3 Sec. 2. As used in sections 2 to 17, inclusive, of this act, unless the

1-4 context otherwise requires, the words and terms defined in sections 3 to

1-5 8, inclusive, of this act have the meanings ascribed to them in those

1-6 sections.

1-7 Sec. 3. "Account" means the account established pursuant to

1-8 section 9 of this act.

1-9 Sec. 4. "Injured person" means an owner who is damaged by the

1-10 failure of a residential contractor to perform qualified services

1-11 adequately.

1-12 Sec. 5. "Owner" means a natural person who owns a single-family

1-13 residence and who contracts with a residential contractor for the

2-1 performance of qualified services with respect to the residence. The term

2-2 includes a subsequent owner.

2-3 Sec. 6. "Qualified services" means any construction, remodeling,

2-4 repair or improvement performed by a residential contractor on a

2-5 single-family residence occupied by the owner of the residence.

2-6 Sec. 7. "Residential contractor" means a contractor who is licensed

2-7 pursuant to this chapter and who contracts with the owner of a

2-8 single-family residence to perform qualified services.

2-9 Sec. 8. "Subsequent owner" means a person who purchases a

2-10 single-family residence from the owner of the residence within 180 days

2-11 after the completion of qualified services on the residence by a residential

2-12 contractor.

2-13 Sec. 9. 1. In addition to the annual fee for a license required

2-14 pursuant to NRS 624.280, a residential contractor shall pay to the board

2-15 a fee of $600 upon the issuance of a license to the contractor or its

2-16 renewal.

2-17 2. The treasurer of the board shall account separately for the money

2-18 received from the fees collected pursuant to this section. The treasurer of

2-19 the board shall administer the account. The board may refer to the

2-20 money in the account as the "recovery fund."

2-21 3. Except as otherwise provided in section 14 of this act, the money

2-22 in the account must be used to pay claims made by owners who are

2-23 damaged by the failure of a residential contractor to perform qualified

2-24 services adequately, as provided in sections 2 to 17, inclusive, of this act.

2-25 Sec. 10. Except as otherwise provided in section 11 of this act, an

2-43 enforce the judgment to the board.

3-1 Sec. 12. 1. The board or its designee shall hold a hearing if the

3-13 months after the complaint is filed with the board.

3-14 Sec. 13. 1. Except as otherwise provided in section 11 of this act

3-34 recovery and all related issues is final and not subject to judicial review.

3-35 Sec. 14. 1. The board shall:

3-36 (a) Cause an audit of the account to be made every 3 years;

3-37 (b) On or before February 1 of each year, prepare and submit to the

3-38 director of the legislative counsel bureau for transmittal to the

3-39 appropriate legislative committee if the legislature is in session, or to the

3-40 interim finance committee if the legislature is not in session, a statement

3-41 of the condition of the account that is prepared in accordance with

3-42 generally accepted accounting principles;

4-1 (c) Employ accountants as necessary for the performance of the duties

4-2 set forth in this section and pay any related expenses from the money in

4-3 the account, but not to exceed $10,000 in any fiscal year; and

4-4 (d) Employ or contract with persons and procure necessary

4-5 equipment, supplies and services to be paid from or purchased with the

4-6 money in the account, but not to exceed 10 percent of the account in any

4-7 fiscal year, as may be necessary to monitor or process claims filed by

4-8 injured persons that may result in a recovery from the account.

4-9 2. Any interest earned on the money in the account must be credited

4-10 to the account. The board may direct its treasurer to expend the interest

4-11 earned on the money in the account to increase public awareness of the

4-12 account, except that the expenditure for this purpose must not exceed

4-13 $50,000 in any fiscal year.

4-14 Sec. 15. 1. Once an initial balance of $200,000 exists in the

4-15 account, the board shall maintain a minimum balance of $200,000 in the

4-16 account. If necessary to maintain the minimum balance in the account,

4-17 the board shall assess and collect an additional fee from each residential

4-18 contractor. The board shall determine the amount of the additional fee

4-19 based on the amount of money necessary to maintain the minimum

4-20 balance in the account.

4-21 2. Each residential contractor shall make the required payment to

4-22 the board.

4-23 3. The board shall direct its treasurer to deposit the money received

4-24 pursuant to this section in the account established pursuant to section 9

4-25 of this act.

4-26 Sec. 16. The provisions of sections 2 to 17, inclusive, of this act do

4-28 residential contractor.

4-29 Sec. 17. The board shall adopt such regulations as are necessary to

4-30 carry out the provisions of sections 2 to 17, inclusive, of this act,

4-31 including, without limitation, regulations governing:

4-32 1. The disbursement of money from the account; and

4-33 2. The manner in which a complaint is filed with the board or its

4-34 designee pursuant to section 10 of this act.

4-35 Sec. 18. NRS 624.283 is hereby amended to read as follows:

4-36 624.283 1. Each license issued under the provisions of this chapter

4-42 (a) An application for renewal;

5-1 (b) The statement required pursuant to NRS 624.268 if the holder of the

5-2 license is a natural person; [and]

5-3 (c) The fee for renewal fixed by the board [.] ; and

5-4 (d) All fees required pursuant to sections 2 to 17, inclusive, of this act

5-5 if the holder of the license is a residential contractor as defined in section

5-6 7 of this act.

5-7 3. The board may require the licensee to submit at any time a financial

5-8 statement that is prepared by a certified public accountant, if the board

5-9 believes that:

5-10 (a) The licensee did not pay an undisputed debt;

5-11 (b) The licensee has violated or may be violating a provision of chapter

5-12 624 of NRS or a regulation adopted pursuant thereto; or

5-13 (c) The licensee’s financial responsibility may be impaired.

5-14 4. If a license is automatically suspended pursuant to subsection 1, the

5-15 licensee may have his license reinstated upon filing an application for

5-16 renewal within 6 months after the date of suspension and paying, in

5-17 addition to the fee for renewal, a fee for reinstatement fixed by the board,

5-18 if he is otherwise in good standing and there are no complaints pending

5-19 against him. If he is otherwise not in good standing or there is a complaint

5-20 pending, the board shall require him to provide a current financial

5-21 statement prepared by a certified public accountant or establish other

5-22 conditions for reinstatement. If the licensee is a natural person, his

5-23 application for renewal must be accompanied by the statement required

5-24 pursuant to NRS 624.268. A license which is not reinstated within 6

5-25 months after it is automatically suspended may be canceled by the board,

5-26 and a new license may be issued only upon application for an original

5-27 contractor’s license.

5-28 Sec. 19. NRS 624.300 is hereby amended to read as follows:

5-29 624.300 1. Except as otherwise provided in subsection 6, the board

5-43 cash deposit of the licensee,

6-1 if the licensee commits any act which constitutes a cause for disciplinary

6-2 action.

6-3 2. If the board suspends or revokes the license of a contractor for

6-4 failure to establish financial responsibility, the board may, in addition to

6-5 any other conditions for reinstating or renewing the license, require that

6-6 each contract undertaken by the licensee for a period to be designated by

6-7 the board, not to exceed 12 months, be separately covered by a bond or

6-8 bonds approved by the board and conditioned upon the performance of and

6-9 the payment of labor and materials required by the contract.

6-10 3. If a licensee commits a fraudulent act which is a cause for

6-11 disciplinary action under NRS 624.3016, the correction of any condition

6-12 resulting from the act does not preclude the board from taking disciplinary

6-13 action.

6-14 4. If the board finds that a licensee has engaged in repeated acts that

6-15 would be cause for disciplinary action, the correction of any resulting

6-16 conditions does not preclude the board from taking disciplinary action

6-17 pursuant to this section.

6-18 5. The expiration of a license by operation of law or by order or

6-19 decision of the board or a court, or the voluntary surrender of a license by

6-20 a licensee, does not deprive the board of jurisdiction to proceed with any

6-21 investigation of, or action or disciplinary proceeding against, the licensee

6-22 or to render a decision suspending or revoking the license.

6-23 6. The board shall not take any disciplinary action pursuant to this

6-24 section regarding a constructional defect, as that term is defined in NRS

6-25 40.615, during the period in which any claim arising out of that defect is

6-26 being settled, mediated or otherwise resolved pursuant to NRS 40.600 to

6-27 40.695, inclusive, unless the disciplinary action is necessary to protect the

6-28 public health or safety.

6-29 7. If discipline is imposed pursuant to this section, the costs of the

6-30 proceeding, including investigative costs and attorney’s fees, may be

6-31 recovered by the board.

6-32 Sec. 20. NRS 624.3016 is hereby amended to read as follows:

6-33 624.3016 The following acts or omissions, among others, constitute

6-43 act.

7-1 Sec. 21. 1. This section and section 9 of this act become effective on

7-2 October 1, 1999.

7-3 2. Sections 1 to 8, inclusive, and 10 to 20, inclusive, of this act become

7-4 effective on July 1, 2001.